To prepare a master budget for January, February, and March, use the following information.

a$.$ The company's single product is purchased for $$20$ per unit and resold for $$59$ per unit. The inventory level of $4,500$ units on December $31$ is more than management's desired level, which is $20\%$ of the next month's budgeted sales units. Budgeted sales are January, $7,000$ units; February, $9,000$ units; March, $11,250$ units; and April, $11,000$ units. All sales are on credit.

b$.$ Cash receipts from sales are budgeted as follows: January, $$243,900$; February, $$729,869$; March, $$536,959.$

c$.$ Cash payments for merchandise purchases are budgeted as follows: January, $$65,000$; February, $$302,200$; March, $$106,600.$

d$.$ Sales commissions equal to $20\%$ of sales dollars are paid each month. Sales salaries $($excluding commissions$)$ are $$5,500$ per month.

e$.$ General and administrative salaries are $$11,000$ per month. Maintenance expense equals $$1,900$ per month and is paid in cash.

f$.$ New equipment purchases are budgeted as follows: January, $$38,400$; February, $$96,000$; and March, $$26,400.$ Budgeted depreciation expense is January, $$6,775$; February, $$7,775$; and March, $$8,050.$

g$.$ The company budgets a land purchase at the end of March at a cost of $$170,000,$ which will be paid with cash on the last day of the month.

h$.$ The company has an agreement with its bank to obtain additional loans as needed. The interest rate is $1\%$ per month and interest is paid at each month$-$end based on the beginning$-$month balance. Partial or full payments on these loans are made on the last day of the month. The company maintains a minimum ending cash balance of $$21,000$ at the end of each month.

i$.$ The income tax rate for the company is $41\%.$ Income taxes on the first quarter's income will not be paid until April $15.$